The Allan Government in Victoria, Australia is exploring ways to help farmers grow industrial hemp.
License issued by Agriculture Victoria In the state, it is necessary to obtain a license in order to process and cultivate industrial hemp for non-therapeutic uses. Agriculture Victoria issues these licenses, which are governed by Part IVA in the Drugs, Poisons and Controlled Substances Act of 1981. Industrial hemp isn’t a controlled substance, but it is regarded as a drug under the law.
In addition to the administrative burden and the drug association, the cultivation of the crop is subjected to a variety of charges, including a license application fee of $489.90; a renewal licence fee of $155, and an inspection charge of $57 for every quarter hour.
The number of hemp licenses in Victoria reflects these and other obstacles for the crop. There were only 32 licenses valid in Victoria in October 2025. Many of these were not active. Just six licence holders grew industrial hemp in 2024–25, with one licence holder responsible for the majority of the 226 hectares planted.
In order to address this situation, Victorian Agriculture Minister Ros Spence launched a consultation with the public on a proposed stand-alone law that will see industrial hemp not be associated directly with drug and poison laws. This would help reduce stigma as well clarify its legal standing.
The proposed legislation doesn’t relate to medicinal cannabis — that is regulated separately to hemp by existing state and federal government legislation.
The legislation will be updated to reflect that industrial hemp is a better crop.
Through the consultation, Victorians are being invited to share their priorities for the industry and identify what’s working — and what isn’t.
Consultation will also examine the requirement for a license that would allow hemp cultivation in Victoria above the threshold of 1 percent THC.
We’re exploring ways to expand Victoria’s hemp industrial industry, unlocking new farming opportunities and creating new jobs in Regional Victoria,” said Minister Spence. The proposed legislation “will support the use industrial hemp for more products as well as create sustainable alternatives to housing construction materials and packaging, and textiles”.
Consultations will continue until the 3rd of December 2025, and a report is expected in January 2026.